The Retirement Belief Model: Understanding the Search for Pension Information

39 Pages Posted: 20 Jul 2018  

Wiebke Eberhardt

Maastricht University

Elisabeth Brüggen

Maastricht University

Thomas Post

Maastricht University - School of Business and Economics - Department of Finance; Netspar

Chantal Hoet

Aegon

Date Written: June 28, 2018

Abstract

Many individuals avoid information relevant for retirement planning. This behavior is worrying as pension systems shift risks and responsibilities to individuals. Individuals who avoid pension information fail to discover whether they save too little for retirement, negatively affecting their long-run financial well-being. We generate knowledge about the factors that stimulate or hinder the search for pension information. Using an interdisciplinary lens, we develop a unifying model - the Retirement Belief Model (RBM) - and empirically validate it with field data from the Netherlands and United Kingdom. We find that the RBM core beliefs (susceptibility, severity, benefits, barriers, and self-efficacy) as well as trust and emotions significantly explain search for pension information. Our findings help both pension providers and policy makers in improving pension communication by stressing, for example, the benefits of information acquisition, by establishing trust and designing segment specific approaches.

Keywords: Retirement, Beliefs, Information Acquisition, Pensions

JEL Classification: D14, D83, D91, H31

Suggested Citation

Eberhardt, Wiebke and Brüggen, Elisabeth and Post, Thomas and Hoet, Chantal, The Retirement Belief Model: Understanding the Search for Pension Information (June 28, 2018). Available at SSRN: https://ssrn.com/abstract=3205085 or http://dx.doi.org/10.2139/ssrn.3205085

Wiebke Eberhardt

Maastricht University ( email )

Maastricht, 6200 MD
Netherlands

Elisabeth Brüggen

Maastricht University ( email )

P.O. Box 616
Maastricht, 6200MD
Netherlands

Thomas Post (Contact Author)

Maastricht University - School of Business and Economics - Department of Finance ( email )

Tongersestraat 53
Maastricht, 6200 MD
Netherlands
+31 43 38 83899 (Phone)
+31 43 38 84875 (Fax)

HOME PAGE: http://www.thomas-post.com

Netspar ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

HOME PAGE: http://www.netspar.nl

Chantal Hoet

Aegon ( email )

2501 CE The Hague
Netherlands

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